Market Research

In order to have a successful execution of your business, however big or small, one among the most effective ways to plan your business is market research. This is where one can base what is a substancial business for a particular group of people living in a common place, be it in a local community, rural or urban society, or even to the extent of global economy. By substancial, we mean relevant, needed, and timely. For example, a business person won't set up a store that sells typewriters if the market is in Tokyo Japan. In the same way, as another business person won't venture in providing internet services if the market is in Timbuktu, Africa (Although, I believe, in the possibility that the second example will no longer be true sooner or later). A person or group of people who would like to invest one's capital needs to know the whereabouts of the market.

Setting up a business is similar to gambling but not exactly gambling. Business and gambling are similar in the sense that there are risks that we can't eliminate. Well, they both follow a set of rules and they both rely on chances or on the probability of winning from what has been laid down. We can be scientific and mathematical on both if we talk about probability of getting our results, however, they still differ. In gambling, the probability merely rests on what you have and it stays there. Everything is upto chance. Say for example, you are playing Black Jack, your chances of winning is the probility that you get 21 out of several possible combinations of cards from a deck of 52, against the numberof players that you are competing with on the table. Setting up a business is different, chances rely to things that you don't have control; but it doesn't stop there. A business person can try to eliminate as many uncotrollable factors that one can as long as the person understands the market. Therefore, market research is very important.

"Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include to help create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level.

Market research is generally either primary or secondary. In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product. The advantages of secondary research are that it is relatively cheap and easily accessible. Disadvantages of secondary research are that it is often not specific to your area of research and the data used can be biased and is difficult to validate. Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product.

A list of questions that can be answered through market research:

What is happening in the market? What are the trends? Who are the competitors? How do consumers talk about the products in the market? Which needs are important? Are the needs being met by current products? "

See weblink: http://en.wikipedia.org/wiki/Market_research.

This is a simple way to understand the need of consumers, to fulfill the needs that are not met, to exceed their expectations, to know who are the competitors, to lead the competition, and to make a profitable business. But of course, a market research needs to be relative to every type of business. The bigger the business, the more detailed a market research needs to be. And again the goal is to execute a profitable business.